tl;dr
The Securities and Exchange Commission is poised to adopt a rule aimed at rectifying structural issues in the Treasury market, requiring traders and companies dealing in U.S. Treasuries to register as broker-dealers. This move is seen as a regulatory undertaking to bolster oversight within the $26 t...
The Securities and Exchange Commission is poised to adopt a rule aimed at rectifying structural issues in the Treasury market, requiring traders and companies dealing in U.S. Treasuries to register as broker-dealers. This move is seen as a regulatory undertaking to bolster oversight within the $26 trillion Treasury market. The proposed rule mandates any entity that has traded more than $25 billion worth of Treasuries in four of the last six months to register as a broker-dealer. The rule would also encompass entities making comparable purchases and sales of the same or similar securities. The culmination of this regulation comes as the SEC's five commissioners are scheduled to vote on Tuesday. This anticipated rule, together with the recent demand for hedge funds to centrally clear more Treasury trades, presents the most substantial transformation of the Treasury market in years, raising concerns over the prospective increase in cost for investors partaking in the market and the imposition of unnecessary regulatory burdens on pensions and other entities. BlackRock executives have expressed trepidation regarding the broadening of quantitative and qualitative testing for the definition of a 'government securities dealer' proposed in the rule. Meanwhile, Senator Tim Scott has also warned that the additional compliance burdens associated with registering as a dealer may lead some market participants to exit the Treasury market, likely resulting in wider bid-ask spreads and a substantial liquidity drain.
More about BlackRock Inc
BlackRock Inc (NYSE: BLK) is a leading multinational investment management corporation based in New York City. With a market capitalization of $117.02 billion and a price-to-earnings ratio of 21.6, the stock has shown strong performance, currently trading at $914.92. The stock has experienced a 52-week low of $436.48 and a high of $119.62, reflecting a wide trading range. In terms of market sentiment, the Relative Strength Index (RSI) stands at 36.48, indicating a neutral position. The stock is currently trading below its 50-day and 200-day moving averages, suggesting a bearish trend. However, it is important to note that past market behavior is not always indicative of future performance, and investors should consider potential risks and uncertainties associated with the stock.
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